A&J Scott Ltd plans to double production by investing £5m in a new “supermill”.
The Wooperton-based company has placed a £4m order for new milling equipment from Broadbaek of Denmark after securing a comprehensive debt funding package from the Royal Bank of Scotland.
The other £1m will be spent on the sawmill building, plus lifting and strapping equipment required to run alongside the facility. Site preparations are to start during March.
A&J Scott managing director Andrew Scott said: “The improvements made will secure the long-term future of the mill and our employees and make it one of the most modern and efficient in the UK.”
Current mainline production of 1,200m3 per week from two existing mills will increase to more than 2,000m3 when the new facility is commissioned in April 2006. The older mills are then expected to be sold.
Sales director Ian Barfoot said growing demand for consistent quality timber products had given the company confidence to go ahead with expansion.
He said sales were being targeted towards growth sectors such as garden products, fencing and landscaping.
To meet the demand, the company is also investing £250,000 on machinery within its fencing manufacturing division, in order to add value to mainline products.
A&J Scott’s investment follows the sale last October of its non-core pallet manufacturing sites at Manchester and Tyneside.
